But now, Reid and the Democratic Party are in a good position to pummel the divided GOP on the popular tax extension.

In some ways, though, Democrats are also split on this issue. From a policy standpoint, they want the tax holiday to pass. They believe it would bolster the economy, which would in turn enhance President Obama’s reelection chances.

But a deal on the payroll tax would take it off the table as a campaign talking point, just days away from the start of the election year.

That’s why Reid is such a key figure this week.

He is a legislative dealmaker but is also working hard (and perhaps in the opposite direction) to keep his Senate majority.

Boehner has crafted his own alternative that has sweeteners for conservatives, including provisions calling for action on the stalled Keystone pipeline from Canada to Texas.

The Speaker is hoping to change the political dynamic by passing that bill even though it’s not going anywhere in the Senate.

Reid and Boehner have a good working relationship. They averted a government shutdown earlier this year and later struck a deal that raised the debt limit and set up the supercommittee on deficit reduction.

But the Reid-Boehner relationship will be tested this week — and perhaps next week if negotiations stall over the next several days.